EWING, N.J.--(BUSINESS WIRE)--
Universal
Display Corporation (Nasdaq: OLED), enabling energy-efficient
displays and lighting with its UniversalPHOLED®
technology and materials, today reported financial results for the
second quarter ended June 30, 2016.
For the second quarter of 2016, the Company reported net income of $21.8
million, or $0.46 per diluted share, on revenues of $64.4 million. This
includes $1.8 million of currency exchange loss related to the BASF OLED
patent acquisition. For the second quarter of 2015, the Company reported
a net loss of $11.8 million, or $0.25 per diluted share, on revenues of
$58.1 million. The 2015 net loss reflected a $33.0 million write-down of
inventory, primarily of an existing host material and associated
work-in-process. Excluding this item and its associated $1.9 million
reduction of income tax expense, adjusted net income for the second
quarter of 2015 was $19.4 million, or $0.41 per diluted share (see
"reconciliation of non-GAAP Measures" below for further discussion of
the non-GAAP measures included in this release).
“Our second quarter 2016 revenues and net income increased
year-over-year, and we maintained our strong margin profile. We are
confident that the underlying growth fundamentals of our long-term
outlook remain robust, but near-term, we expect our revenue growth will
be delayed by about six months,” said Sidney D. Rosenblatt, Executive
Vice President and Chief Financial Officer of Universal Display.
Rosenblatt continued, “We expect strong revenue growth in 2017. At that
time, new OLED production from the multi-year capital expenditure cycle
is slated to start contributing to our revenues. Ahead of this wave of
high-volume capacity, we have been working to expand and broaden our
team and core competencies to advance our strategic initiatives and
increase our competitive edge. We expect these initiatives, along with
new OLED capacity, coupled with our pipeline of new materials, new
technologies and new agreements, to bolster our long-term growth plan.”
Financial Highlights for the Second Quarter of
2016
The Company reported revenues of $64.4 million, compared to revenues of
$58.1 million for the same quarter of 2015, an increase of 10.8%.
Material sales were $22.3 million, down 8.3% compared to the second
quarter of 2015, primarily due to a $2.0 million decline in host
material sales. Royalty and license fees were $42.0 million, up from
$33.7 million in the second quarter of 2015. The Company recognized
$37.5 million in Samsung Display Co., Ltd. (SDC) licensing revenue in
the second quarter of 2016, up from $30.0 million in the same quarter of
2015.
The Company reported operating income of $34.0 million in the second
quarter of 2016, compared to an operating loss of $4.8 million for the
second quarter of 2015. Excluding the inventory write-down of $33.0
million, adjusted operating income was $28.2 million for the second
quarter of 2015. Operating expenses were $30.4 million, compared to
$62.9 million in the second quarter of 2015 and cost of materials was
$5.7 million, compared to $39.1 million in the second quarter of 2015,
both of which included the inventory write-down of $33.0 million in the
second quarter of 2015.
The Company’s balance sheet remained strong, with cash and cash
equivalents and investments of $332.0 million as of June 30, 2016.
During the second quarter, the Company added $96.0 million in intangible
assets in the form of intellectual property purchases and certain other
assets from BASF, increasing the portfolio to more than 4,100 issued and
pending patents worldwide. During the second quarter, the Company
generated $36.2 million in operating cash flow.
Financial Highlights for the First Six Months
of 2016
The Company reported revenues of $94.1 million, compared to revenues of
$89.3 million for the first half of 2015, or an increase of 5.4%.
Material sales were $46.6 million, down 8.8% compared to $51.1 million
in the first half of 2015, primarily due to a $7.0 million decline in
host sales. Royalty and license fees were $47.4 million, up from $38.1
million in the first half of 2015.
The Company reported operating income of $36.7 million in the first half
of 2016, compared to an operating loss of $3.1 million for the first
half of 2015. Excluding the inventory write-down of $33.0 million,
adjusted operating income was $30.0 million for 2015. For the first half
of 2016, we reported net income of $23.8 million, or $0.51 per diluted
share, compared to a net loss of $10.5 million, or $0.23 per diluted
share, for the same period of 2015. Excluding the inventory write-down
and the associated $1.9 million reduction of income tax expense,
adjusted net income was $20.7 million, or $0.45 per diluted share, for
the first half of 2015.
Operating cash flow for the first half of 2016 was $36.2 million, a
decrease of 51.8% compared to $75.2 million for the first half of 2015
which included an upfront $42.0 million license and royalty payment.
2016 Guidance
While the OLED industry is still at a stage where many variables can
have a material impact on its growth, based upon the most recent and
best information on hand, the Company believes it is prudent to revise
its 2016 revenues guidance. The Company now expects 2016 revenues to be
in the range of $190 million to $200 million.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, August 4, 2016 at 5:00 p.m. Eastern Time.
The live webcast of the conference call can be accessed under the events
portion of the Company's website. Those wishing to participate in the
live call should dial 1-888-504-7953 (toll-free) or 1-719-325-2370, and
reference conference ID 2421808. Please dial in 5-10 minutes prior to
the scheduled conference call time. An online archive of the webcast
will be available within two hours of the conclusion of the call.
About Universal Display Corporation
Universal Display Corporation (Nasdaq: OLED) is a leader in developing
and delivering state-of-the-art, organic light emitting diode (OLED)
technologies, materials and services to the display and lighting
industries. Founded in 1994, the Company currently owns or has
exclusive, co-exclusive or sole license rights with respect to more than
4,100 issued and pending patents worldwide. Universal Display licenses
its proprietary technologies, including its breakthrough high-efficiency
UniversalPHOLED® phosphorescent OLED technology that can enable the
development of low power and eco-friendly displays and white lighting.
The Company also develops and offers high-quality, state-of-the-art
UniversalPHOLED materials that are recognized as key ingredients in the
fabrication of OLEDs with peak performance. In addition, Universal
Display delivers innovative and customized solutions to its clients and
partners through technology transfer, collaborative technology
development and on-site training.
Based in Ewing, New Jersey, with international offices in Ireland, South
Korea, Hong Kong, Japan and Taiwan, Universal Display works and partners
with a network of world-class organizations, including Princeton
University, the University of Southern California, the University of
Michigan, and PPG Industries, Inc. The Company has also established
relationships with companies such as AU Optronics Corporation, BOE
Technology, DuPont Displays, Inc., Innolux Corporation, Kaneka
Corporation, Konica Minolta Technology Center, Inc., LG Display Co.,
Ltd., Lumiotec, Inc., OLEDWorks LLC, OSRAM, Pioneer Corporation, Samsung
Display Co., Ltd., Sumitomo Chemical Company, Ltd., Tianma
Micro-electronics and Tohoku Pioneer Corporation. To learn more about
Universal Display, please visit http://www.oled.com.
Universal Display Corporation and the Universal Display logo are
trademarks or registered trademarks of Universal Display Corporation.
All other company, brand or product names may be trademarks or
registered trademarks.
All statements in this document that are not historical, such as
those relating to Universal Display Corporation’s technologies and
potential applications of those technologies, the Company’s expected
results as well as the growth of the OLED market and the Company’s
opportunities in that market, are forward-looking financial statements
within the meaning of the Private Securities Litigation Reform Act of
1995. You are cautioned not to place undue reliance on any
forward-looking statements in this document, as they reflect Universal
Display Corporation’s current views with respect to future events and
are subject to risks and uncertainties that could cause actual results
to differ materially from those contemplated. These risks and
uncertainties are discussed in greater detail in Universal Display
Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the
Securities and Exchange Commission, including, in particular, the
section entitled “Risk Factors” in Universal Display Corporation’s
annual report on Form 10-K for the year ended December 31, 2015.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
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(OLED-C)
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
69,930
|
|
|
$
|
97,513
|
|
|
Short-term investments
|
|
|
246,281
|
|
|
|
297,981
|
|
|
Accounts receivable
|
|
|
17,984
|
|
|
|
24,729
|
|
|
Inventory
|
|
|
16,467
|
|
|
|
12,748
|
|
|
Deferred income taxes
|
|
|
10,097
|
|
|
|
12,326
|
|
|
Other current assets
|
|
|
5,561
|
|
|
|
2,387
|
|
|
Total current assets
|
|
|
366,320
|
|
|
|
447,684
|
|
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $29,736
and $27,897
|
|
|
22,610
|
|
|
|
22,407
|
|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $60,416
and $54,837
|
|
|
162,469
|
|
|
|
72,015
|
|
|
INVESTMENTS
|
|
|
15,767
|
|
|
|
2,187
|
|
|
DEFERRED INCOME TAXES
|
|
|
12,293
|
|
|
|
14,945
|
|
|
OTHER ASSETS
|
|
|
543
|
|
|
|
174
|
|
|
TOTAL ASSETS
|
|
$
|
580,002
|
|
|
$
|
559,412
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,368
|
|
|
$
|
6,849
|
|
|
Accrued expenses
|
|
|
10,701
|
|
|
|
17,387
|
|
|
Deferred revenue
|
|
|
10,232
|
|
|
|
10,107
|
|
|
Other current liabilities
|
|
|
423
|
|
|
|
167
|
|
|
Total current liabilities
|
|
|
27,724
|
|
|
|
34,510
|
|
|
DEFERRED REVENUE
|
|
|
34,066
|
|
|
|
35,543
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
|
24,292
|
|
|
|
22,594
|
|
|
Total liabilities
|
|
|
86,082
|
|
|
|
92,647
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY:
|
|
|
|
|
|
Preferred Stock, par value $0.01 per share, 5,000,000 shares
authorized, 200,000 shares of Series A Nonconvertible Preferred
Stock issued and outstanding (liquidation value of $7.50 per share
or $1,500)
|
|
|
2
|
|
|
|
2
|
|
|
Common Stock, par value $0.01 per share, 100,000,000 shares
authorized, 48,302,603 and 48,132,223 shares issued and
outstanding at June 30, 2016 and December 31, 2015, respectively
|
|
|
483
|
|
|
|
482
|
|
|
Additional paid-in capital
|
|
|
593,170
|
|
|
|
589,885
|
|
|
Accumulated deficit
|
|
|
(49,876
|
)
|
|
|
(73,627
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(9,701
|
)
|
|
|
(9,819
|
)
|
|
Treasury stock, at cost (1,357,863 shares at June 30, 2016 and
December 31, 2015)
|
|
|
(40,158
|
)
|
|
|
(40,158
|
)
|
|
Total shareholders’ equity
|
|
|
493,920
|
|
|
|
466,765
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
580,002
|
|
|
$
|
559,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
(in thousands, except share and per share data)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Material sales
|
|
$
|
22,315
|
|
|
$
|
24,324
|
|
|
$
|
46,619
|
|
|
$
|
51,142
|
|
|
Royalty and license fees
|
|
|
42,018
|
|
|
|
33,733
|
|
|
|
47,360
|
|
|
|
38,108
|
|
|
Technology development and support revenue
|
|
|
59
|
|
|
|
35
|
|
|
|
116
|
|
|
|
65
|
|
|
Total revenue
|
|
|
64,392
|
|
|
|
58,092
|
|
|
|
94,095
|
|
|
|
89,315
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
5,684
|
|
|
|
39,086
|
|
|
|
10,736
|
|
|
|
47,667
|
|
|
Research and development
|
|
|
10,969
|
|
|
|
10,647
|
|
|
|
21,445
|
|
|
|
20,566
|
|
|
Selling, general and administrative
|
|
|
7,688
|
|
|
|
6,983
|
|
|
|
14,264
|
|
|
|
13,245
|
|
|
Patent costs and amortization of acquired technology
|
|
|
4,060
|
|
|
|
4,462
|
|
|
|
8,154
|
|
|
|
8,429
|
|
|
Royalty and license expense
|
|
|
1,966
|
|
|
|
1,673
|
|
|
|
2,841
|
|
|
|
2,458
|
|
|
Total operating expenses
|
|
|
30,367
|
|
|
|
62,851
|
|
|
|
57,440
|
|
|
|
92,365
|
|
|
Operating income (loss)
|
|
|
34,025
|
|
|
|
(4,759
|
)
|
|
|
36,655
|
|
|
|
(3,050
|
)
|
|
INTEREST INCOME
|
|
|
661
|
|
|
|
188
|
|
|
|
993
|
|
|
|
361
|
|
|
INTEREST EXPENSE
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
|
(15
|
)
|
|
|
(24
|
)
|
|
OTHER (EXPENSE) INCOME
|
|
|
(1,829
|
)
|
|
|
278
|
|
|
|
(1,914
|
)
|
|
|
340
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
32,849
|
|
|
|
(4,305
|
)
|
|
|
35,719
|
|
|
|
(2,373
|
)
|
|
INCOME TAX EXPENSE
|
|
|
(11,047
|
)
|
|
|
(7,466
|
)
|
|
|
(11,968
|
)
|
|
|
(8,084
|
)
|
|
NET INCOME (LOSS)
|
|
$
|
21,802
|
|
|
$
|
(11,771
|
)
|
|
$
|
23,751
|
|
|
$
|
(10,457
|
)
|
|
NET INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$
|
0.46
|
|
|
$
|
(0.25
|
)
|
|
$
|
0.51
|
|
|
$
|
(0.23
|
)
|
|
DILUTED
|
|
$
|
0.46
|
|
|
$
|
(0.25
|
)
|
|
$
|
0.51
|
|
|
$
|
(0.23
|
)
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
46,927,543
|
|
|
|
46,388,218
|
|
|
|
46,862,199
|
|
|
|
45,840,599
|
|
|
DILUTED
|
|
|
47,041,854
|
|
|
|
46,388,218
|
|
|
|
46,985,374
|
|
|
|
45,840,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
(in thousands)
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
23,751
|
|
|
$
|
(10,457
|
)
|
|
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
Amortization of deferred revenue
|
|
|
(3,601
|
)
|
|
|
(4,893
|
)
|
|
Depreciation
|
|
|
1,839
|
|
|
|
1,439
|
|
|
Amortization of intangibles
|
|
|
5,579
|
|
|
|
5,500
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
33,000
|
|
|
Amortization of premium and discount on investments, net
|
|
|
(801
|
)
|
|
|
(285
|
)
|
|
Stock-based compensation to employees
|
|
|
5,401
|
|
|
|
4,039
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
891
|
|
|
|
659
|
|
|
Deferred income tax benefit
|
|
|
4,826
|
|
|
|
3,984
|
|
|
Retirement plan benefit expense
|
|
|
1,982
|
|
|
|
1,512
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
Accounts receivable
|
|
|
6,745
|
|
|
|
4,697
|
|
|
Inventory
|
|
|
(3,719
|
)
|
|
|
(12,860
|
)
|
|
Other current assets
|
|
|
(3,174
|
)
|
|
|
(417
|
)
|
|
Other assets
|
|
|
(369
|
)
|
|
|
80
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(5,625
|
)
|
|
|
826
|
|
|
Other current liabilities
|
|
|
256
|
|
|
|
(58
|
)
|
|
Deferred revenue
|
|
|
2,250
|
|
|
|
48,412
|
|
|
Net cash provided by operating activities
|
|
|
36,231
|
|
|
|
75,178
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,162
|
)
|
|
|
(3,146
|
)
|
|
Purchase of intangibles
|
|
|
(96,033
|
)
|
|
|
—
|
|
|
Purchases of investments
|
|
|
(325,226
|
)
|
|
|
(267,520
|
)
|
|
Proceeds from sale of investments
|
|
|
364,017
|
|
|
|
263,058
|
|
|
Net cash used in investing activities
|
|
|
(59,404
|
)
|
|
|
(7,608
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
202
|
|
|
|
171
|
|
|
Proceeds from the exercise of common stock options
|
|
|
182
|
|
|
|
1,372
|
|
|
Payment of withholding taxes related to stock-based compensation to
employees
|
|
|
(4,794
|
)
|
|
|
(5,280
|
)
|
|
Net cash used in financing activities
|
|
|
(4,410
|
)
|
|
|
(3,737
|
)
|
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(27,583
|
)
|
|
|
63,833
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
97,513
|
|
|
|
45,418
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
69,930
|
|
|
$
|
109,251
|
|
|
The following non-cash activities occurred:
|
|
|
|
|
|
Unrealized loss on available-for-sale securities
|
|
$
|
131
|
|
|
$
|
8
|
|
|
Common stock issued to Board of Directors and Scientific Advisory
Board that was earned and accrued for in a previous period
|
|
|
300
|
|
|
|
300
|
|
|
Common stock issued to employees that was earned and accrued for
in a previous period
|
|
|
1,105
|
|
|
|
967
|
|
|
Net change in accounts payable and accrued expenses related to
purchases of property and equipment
|
|
|
(120
|
)
|
|
|
(725
|
)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures
The following table details our reconciliation of non-GAAP measures to
the most directly comparable GAAP measures:
|
|
|
|
|
|
|
(unaudited, in thousands, except share and per share data)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Operating income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
34,025
|
|
|
$
|
(4,759
|
)
|
|
$
|
36,655
|
|
|
$
|
(3,050
|
)
|
|
Operating income (loss) adjustments:
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
33,000
|
|
|
|
—
|
|
|
|
33,000
|
|
|
Adjusted operating income
|
|
$
|
34,025
|
|
|
$
|
28,241
|
|
|
$
|
36,655
|
|
|
$
|
29,950
|
|
|
Operating income (loss) as a % of total revenue
|
|
|
53
|
%
|
|
|
(8
|
)%
|
|
|
39
|
%
|
|
|
(3
|
)%
|
|
Adjusted operating income as a % of total revenue
|
|
|
53
|
%
|
|
|
49
|
%
|
|
|
39
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) reconciliation
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
21,802
|
|
|
$
|
(11,771
|
)
|
|
$
|
23,751
|
|
|
$
|
(10,457
|
)
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
$
|
(0.25
|
)
|
|
$
|
0.51
|
|
|
$
|
(0.23
|
)
|
|
Diluted
|
|
$
|
0.46
|
|
|
$
|
(0.25
|
)
|
|
$
|
0.51
|
|
|
$
|
(0.23
|
)
|
|
Net income (loss) adjustments:
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
—
|
|
|
|
33,000
|
|
|
|
—
|
|
|
|
33,000
|
|
|
Income tax effect of inventory write-down
|
|
|
—
|
|
|
|
(1,860
|
)
|
|
|
—
|
|
|
|
(1,860
|
)
|
|
Adjusted net income *
|
|
$
|
21,802
|
|
|
$
|
19,369
|
|
|
$
|
23,751
|
|
|
$
|
20,683
|
|
|
Net income (loss) as a % of total revenue
|
|
|
34
|
%
|
|
|
(20
|
)%
|
|
|
25
|
%
|
|
|
(12
|
)%
|
|
Adjusted net income as a % of total revenue
|
|
|
34
|
%
|
|
|
33
|
%
|
|
|
25
|
%
|
|
|
23
|
%
|
|
Adjusted net income per share:
|
|
|
|
|
|
|
|
|
|
Basic **
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
|
$
|
0.51
|
|
|
$
|
0.45
|
|
|
Diluted ***
|
|
$
|
0.46
|
|
|
$
|
0.41
|
|
|
$
|
0.51
|
|
|
$
|
0.45
|
|
|
Weighted average shares used in computing net income (loss) per
share and adjusted net income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,927,543
|
|
|
|
46,388,218
|
|
|
|
46,862,199
|
|
|
|
45,840,599
|
|
|
Diluted
|
|
|
47,041,854
|
|
|
|
46,388,218
|
|
|
|
46,985,374
|
|
|
|
45,840,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Adjusted net income assumes an effective tax rate of 32.5% based on
excluding the impact of the inventory write down.
|
|
**
|
|
Adjusted net income per common share, basic, is derived from
dividing adjusted net income by the number of weighted average
shares used in computing basic net income per common share.
|
|
***
|
|
Adjusted net income per common share, diluted, for the three and six
months ended June 30, 2015 is derived from dividing non-GAAP
adjusted net income by the weighted average shares of 46,691,525 and
46,421,612, respectively.
|
|
|
|
|
Non-GAAP Measures
To supplement our selected financial data presented in accordance with
U.S. generally accepted accounting principles (GAAP), we use certain
non-GAAP measures. These non-GAAP measures include adjusted operating
income, adjusted net income, adjusted net income per common share, basic
and adjusted net income per common share, diluted.
Each of these non-GAAP measures excludes the effect of the 2015
write-down of primarily existing host materials that were not included
in our customer’s new products. We have provided these non-GAAP
measures, which we believe more accurately reflect the operating
performance of our ongoing business, to enhance investors' overall
understanding of our current financial performance and period-to-period
comparisons. The presentation of non-GAAP measures is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804006435/en/
Source: Universal Display Corporation